Chapter 9: Human Resource Management – Getting the Right People for Managerial

Success

9.1 Strategic Human Resource Management

The third factor that influences org’s ability to successfully implement strategy is human
resource practices
 HR Practices : consist of all the activities that organizations use to manage their human capital,
including staffing, performance management, learning and development programs, and
compensation
 Human Resouce management (HRM) : the process of planning for, attracting, developing, and
retaining an effective workforce
 Strategic human resource management: the process of designing and implementing systems of
policies and practices that align an organization’s human capital with its strategic objectives.
Strategic HRM (SHRM) mobilizes necessary human and social capital.
● Human capital: the economic or productive potential of employee
knowledge, experience, and actions → stems from employee
competencies
● Social capital: the economic or productive potential of strong, trusting,
and cooperative relationships → stems from reciprocity, knowledge,
and capabilities embedded in informal connections and personal
relationships
 Strategic HR Planning -Strategic human resource planning consists of developing a systematic,
comprehensive strategy for
(a) understanding current employee needs and
(b) predicting future employee needs.

 Understanding current employee needs - To plan for the future, you must understand the
present-what today's staffing picture looks like. This requires that you do a job analysis first and
from that write a job description and a job specification.
 Predicting Future Employee Needs - means you have to become knowledgeable about the
staffing the organization might need and the likely sources for that staffing.

9.2 Recruitment and Selection: Putting the Right People into the Right Jobs
 Recruiting : the process of locating and attracting qualified applicants for job openings.
 Internal recruiting : making people already employed by the organization aware of job
openings
 External recruiting : attracting job applicants from outside the organization

Q: Which External Recruiting Methods Work Best?

 Selection : the process of screening job applicants and choosing the best candidate for a
position.
3 types of selection checks include background information, interviews, and
 employment tests,
1. Background information → education, work experience,certifications, citizenship
2. Interviews
a. unstructured interview : they gather information about a job candidate without the use
of a fixed set of questions or a systematic scoring procedure
b. situational interview : a structured interview in which raters ask applicants how they
would behave in hypothetical job situations
c. Behavioral-description interviews : a structured interview in which raters explore
applicants’ job-related past behavior
3. Employment tests : the standardized devices oroganizations use to measure specific skills,
abilities, traits, and other tendencies
a. Ability tests
b. Performance tests
c. Personality tests
d. Integrity tests
e. Drug and alcohol tests
f. Criminal and financial background checks

9.3 Managing an Effective Workforce: Compensation and Benefits

Compensation has three parts: (1) wages or salaries, (2) incentives, and (3) benefits.

1. Base pay : consists of the basic wage or salary paid employees in exchange for doing their jobs
2. Incentives- commissions, bonuses, profit-sharing plans, stock options
3. Benefits : nonmonetary forms of compensation designed to enrich the lives of all employees in
the organization, paid fully or in part by the organization.

9.4 Onboarding and Learning and Development

 Onboarding (aka employee socialization) : the programs designed to integrate and
transition employees into new jobs and organizations through familiarization with
corporate policies, procedures, cultures, and politics, and clarification of work-role
expectations and responsibilities
 Positive onboarding
 Negative onboarding

9.5 Performance Management

 Performance management: a set of processes and managerial behaviors that involve defining,
monitoring, measuring, evaluating, and providing consequences for performance expectations
Steps for performance management
1. Define performance
2. Monitor and evaluate performance
3. Review performance
4. Provide consequences
 Performance appraisal: a management process that consists of 1) assessing employees’
performance and 2) providing them with feedback
 Objective appraisals : based on facts and often numerical
 Subjective appraisals : based on a manage’s perceptions of an employee’s traits or behaviors
9.6 Managing Promotions, Transfers, Disciplining, and Dismissals
  Promotion : moving an employee to a higher-level position; the most obvious way to recognize
a person’s superior performance; factors to consider:
 Fairness - step up must be deserved
 Discrimination - shouldn’t be discriminated on basis of sexual orientation, gender,
ethnicity, etc
 Others’ resentements
 Transfer : is the movement of an employee to a different job with similar responsibility
 Poorly performing employees may be given a warning or a reprimand and then disciplined
(temproary removal like suspension or demoted by having part of responsibilities and pay taken
away)
 Dismissals have 3 categories: layoffs, downsizing, firings
● Layoffs : when a person has been dismissed temporarily and may be recalled when economic
conditions improve
● Downsizing: a permanent dismissal
● Firing: the persona was permanently dismissed for cause
 Exit interview : a formal conversation between a representative from the organization and a
departing employee to find out why he or she is leaving and to learn about potential problems
in the organization
 Non Disparagement agreement : a contract between two parties prohibiting both parties from
criticizing each other
 Employment at will : the governing principle of employment in the great majority of states, it
means that anyone can be dismissed at any time for any reason, or for no reason at all

 9.7 The Legal Requirements of Human Resource Management
1. Labor Relations
● National Labor Relations Board (NLRB) : enforces procedures whereby employees may vore to
have a union and for collective bargaining
2. Compensation and Benefitd
● Social Security Act of 1935 : establishes the US retirement system
● Fair Labor Standards Act of 1938
3. Health and Safety
● Occupational Safety and Health Ac t:
4. Equal Emmployment Opportunity
● Equal Employment Opportunity Commission :
5. Workplace Discrimination
● Workplace dscrimination :
 Adverse impact :
 Disparate treatment:
 Affirmative action :
 Sexual harassment :
 Bullying :
9.8 Labor-Management Issues
 Labor unions: organizations of employees formed to protect and advance their members
interests by bargaining with management over job-related issues
 Union security clause : part of the labor-management agreement that states that
employees who receive union benefits must join the union, or at least pay dues to it
  Right-to-work laws : stautes that prohibit employees from being required to join a union as a
condition of employment
 Two-tier wage contracts : new employees are paid less or receive fewer benefits than veteran
employees have
 Cost-of-living adjustment clause :during the period of the contract ties future wage increases to
inceases in cost of living as measured by US Bureau of labor Statistics
 Givebacks : the union agrees to give up previous wage or benefit gains in return for something
else
 Grievance : complaint by an employee that a manager has violated the terms of the labor
management agreement
 Mediation: the process by which a neutral third party listens to both sides, make
suggestions, and encourages them to agree on a solution
 Arbitration : the process in which a neutral third party, arbitrator, listens to both parties in a
dispute and makes a decision that the parties have agreed will be binding on them